Investing in Philippines: Yields, Appreciation & Ownership
Who can buy, how ownership works, and the taxes and duties for buying property in Philippines.
Who can buy in Philippines
Article XII Section 7 of the 1987 Constitution reserves land ownership for Filipino citizens. Foreigners may own condominium units provided foreign ownership in the project does not exceed 40% (Condominium Act / RA 4726). Leases up to 50 years available under the Investors' Lease Act.
| Buyer | Permitted | Tenure | Conditions |
|---|---|---|---|
| Filipino Citizen | Yes | Freehold | UnrestrictedApproval: Registry of Deeds |
| Foreign National (condo) | Conditional | Freehold (unit) | Condo unit within 40% building foreign quotaApproval: Condominium Certificate of Title (CCT) |
| Foreign National (land) | No | Leasehold only | Cannot own land; lease up to 25+25 yearsApproval: Investors' Lease Act registration |
Capital gains on a sale
In the Philippines, capital gains tax (CGT) is imposed on the presumed gain from the sale of real property classified as a capital asset.
| Holding period | Classification | Tax rate | Indexation |
|---|---|---|---|
| Any | Capital Asset (Real Property) | 6% | Not applicable; based on gross selling price or fair market value, whichever is higher. |
Always consult a licensed real estate attorney before purchase. Rules change; verify current law. Always confirm with a qualified tax professional. Rules change; verify with a professional before you transact.
Frequently asked questions about Philippines
With conditions. Condo unit within 40% building foreign quota
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